Synopsys and Samsung collaborate on advanced chip design solutions

SUNNYVALE, Calif. - Synopsys, Inc. (NASDAQ:SNPS), a $74.4 billion market cap software giant with impressive 81% gross margins according to InvestingPro, and Samsung Foundry have strengthened their collaboration to advance chip designs for edge AI, high-performance computing, and AI applications, according to a press release issued Monday.

The companies reported a successful customer tape out of an HBM3 design on Samsung’s SF2 process and I-CubeS technology using Synopsys’ 3DIC Compiler, which reportedly reduced turnaround time by 10 times. The collaboration also improved worst-case eye opening by 6% for better performance and reliability. With a strong financial health score and over 7% revenue growth in the last twelve months, Synopsys continues to demonstrate its market leadership.

Synopsys has achieved certification for its AI-driven digital and analog flows on Samsung’s SF2P process, enabling customers to accelerate development of high-performance designs. The companies have also engaged in design technology co-optimization to deliver power, performance, and area (PPA) improvements.

"The adoption of Edge AI applications is driving the need for advancements in semiconductor technologies," said John Koeter, senior vice president for the Synopsys IP Group.

Hyung-Ock Kim, vice president at Samsung Electronics, noted that the collaboration provides customers with "access to Synopsys’ broad portfolio of IP optimized for Samsung’s advanced nodes."

Synopsys has expanded its IP portfolio for Samsung’s advanced process technologies, including 224G, UCIe, MIPI, and LPDDR6 interfaces for the SF2P and SF4X processes. The portfolio supports applications ranging from high-performance computing to automotive markets.

The collaboration aims to help mutual customers accelerate time-to-market for complex designs on Samsung’s advanced process technologies while minimizing integration risks. With a robust current ratio of 7.02 and trading near its Fair Value according to InvestingPro analysis, Synopsys maintains a strong position to support its strategic initiatives. Discover 12 additional key insights and a comprehensive Pro Research Report available exclusively on InvestingPro.

In other recent news, Synopsys has suspended its financial guidance for the third quarter and the full fiscal year of 2025. This decision follows new export restrictions related to China, as outlined in a letter from the U.S. Department of Commerce’s Bureau of Industry and Security. Before this suspension, Synopsys had projected third-quarter revenue between $1.755 billion and $1.785 billion, with non-GAAP earnings per share expected to be from $3.82 to $3.87. The company reported second-quarter revenue of $1.604 billion, slightly exceeding analyst expectations and marking a 10.2% increase from the previous year. Additionally, China’s market regulator has postponed approval of the $35 billion merger between Synopsys and Ansys. In technology advancements, Synopsys demonstrated successful interoperability between its PCIe 6.x IP solution and Broadcom’s PEX90000 series switch. Meanwhile, Stifel analysts maintained a Buy rating on Synopsys shares, with a price target of $550, despite uncertainties in the China market. The analysts highlighted the company’s robust second-quarter results and its continued alignment with industry trends.

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